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Obviously, price is an important factor in all of this, but you should remember that you can add the price of the auto warranty contract in with the financing of the vehicle, in most states, to help spread the cost out over the length of your vehicle loan. When you are looking at another couple hundred dollars to go up to the next level of coverage it works out to a very small increase in your payments. Consider the best plan that you can reasonably afford.
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An extended auto warranty can be purchased to prolong the coverage of the bumper-to-bumper warranty. Most people are familiar with the extended warranty that is sold at dealerships. This is sometimes called a "factory warranty" because factory-trained technicians perform the required work on the car. There are also "third-party" warranties which can save consumers money but are generally less convenient to use. Many third-party warranties require out-of-pocket payment for repairs before reimbursement. Weigh all these factors carefully before you make your choice.
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